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Mizrahi Tefahot Bank Ltd (IL:MZTF)
:MZTF
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Mizrahi Tefahot (MZTF) AI Stock Analysis

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IL:MZTF

Mizrahi Tefahot

(OTC:MZTF)

Rating:81Outperform
Price Target:
Mizrahi Tefahot's strong revenue and profit growth, robust balance sheet free from debt, and excellent cash flow generation highlight its solid financial health, contributing significantly to its score. Positive market momentum and strong technical indicators support its favorable position. Additionally, an attractive valuation with a low P/E ratio and high dividend yield further boosts the overall score. These factors combined indicate a strong performance outlook for the company.

Mizrahi Tefahot (MZTF) vs. iShares MSCI Israel ETF (EIS)

Mizrahi Tefahot Business Overview & Revenue Model

Company DescriptionMizrahi Tefahot Bank Ltd., together with its subsidiaries, provides a range of international, commercial, domestic, and personal banking services to individuals and businesses in Israel, Switzerland, and internationally. It operates through six segments: Household, Small Business, Private Banking, Commercial Banking, Business Banking, and Financial Management. The company offers checking, savings, and deposits accounts; and loans, such as instant, home renovation, auto, all-purpose, student, and business; mortgages; and credit cards. It also provides foreign trade services, including import, export, and documentary credit; bank guarantees; transactions in foreign currency, which include trading in derivative instruments, factoring services, and investments in deposits and securities; financing of real estate and construction projects; mergers and acquisitions services; and private and online banking services. In addition, the company offers capital market services, including consultancy for capital market activities, distribution of mutual funds, management of securities portfolios for clients, pension advisory service, trust services, provision of registration services; operates provident funds, mutual funds, and insurance incidental to mortgages; and participates in syndication transactions, as well as engages in credit operations. As of December 31, 2021, it operated through a network of 225 branches and business centers, including 52 Bank Yahav branches and 29 Union Bank branches in Israel; and two bank affiliates. The company was formerly known as United Mizrahi Bank Limited and changed its name to Mizrahi Tefahot Bank Ltd. in November 2005. The company was incorporated in 1923 and is headquartered in Ramat Gan, Israel.
How the Company Makes MoneyMizrahi Tefahot Bank generates revenue through multiple streams, primarily from interest income on loans and mortgages, which constitute the majority of its earnings. The bank also earns from fees and commissions associated with its banking services, including account management, transaction services, and investment advisory. Additionally, the bank benefits from trading and investment activities, contributing to its financial performance. Strategic partnerships and its strong market position in the mortgage sector further enhance its revenue-generating capabilities.

Mizrahi Tefahot Financial Statement Overview

Summary
Mizrahi Tefahot exhibits solid overall financial health with strong revenue and profit growth, a robust balance sheet free from debt, and excellent cash flow generation. The company's financial structure is stable with low leverage, and it demonstrates effective profitability and cash management. These strengths position the bank well for sustained performance and potential future growth.
Income Statement
85
Very Positive
Mizrahi Tefahot has demonstrated strong revenue growth with a 10.14% increase from 2023 to 2024. The net profit margin improved to 37.18% in 2024 from 36.85% in 2023, indicating effective cost management and profitability. The gross profit margin remains robust at 100%, as typical for banks. The EBIT margin also shows substantial strength at 64.76%, reflecting efficient operations.
Balance Sheet
80
Positive
The company's balance sheet is strong, with a debt-free position in 2024, indicating excellent management of funds. Return on Equity (ROE) improved to 17.43% in 2024 from 17.88% in 2023, showcasing profitability relative to shareholder equity. The equity ratio increased to 6.44%, reflecting a stable financial structure. These metrics suggest financial stability and low leverage risk.
Cash Flow
75
Positive
Operating cash flow increased significantly in 2024, indicating strong cash generation capacity. Free cash flow also saw a remarkable growth of 345.13% from 2023 to 2024, suggesting efficient capital expenditure management. The operating cash flow to net income ratio stands at 2.64, highlighting strong cash conversion from profits. The company shows robust cash management, despite large fluctuations in investing cash flows.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue29.13B28.65B13.32B13.24B10.25B7.85B
Gross Profit14.52B14.67B14.53B13.24B10.25B7.85B
EBITDA9.24B9.27B0.000.000.000.00
Net Income5.47B5.46B4.91B4.47B3.19B1.61B
Balance Sheet
Total Assets517.29B485.64B448.20B428.29B392.27B360.14B
Cash, Cash Equivalents and Short-Term Investments78.89B82.64B85.96B93.67B95.27B86.57B
Total Debt36.33B40.18B37.81B34.07B38.66B34.08B
Total Liabilities482.64B452.91B419.50B403.42B370.54B340.47B
Stockholders Equity33.11B31.29B27.46B23.78B20.77B18.80B
Cash Flow
Free Cash Flow26.26B13.77B3.09B1.36B3.79B4.78B
Operating Cash Flow26.84B14.38B3.53B1.75B4.13B5.06B
Investing Cash Flow-62.77B-43.35B-20.46B-34.40B-25.12B-4.29B
Financing Cash Flow29.83B25.08B9.84B30.38B30.24B35.53B

Mizrahi Tefahot Technical Analysis

Technical Analysis Sentiment
Positive
Last Price20670.00
Price Trends
50DMA
21205.20
Negative
100DMA
19760.90
Positive
200DMA
17982.62
Positive
Market Momentum
MACD
-106.94
Negative
RSI
50.40
Neutral
STOCH
48.53
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IL:MZTF, the sentiment is Positive. The current price of 20670 is below the 20-day moving average (MA) of 20985.00, below the 50-day MA of 21205.20, and above the 200-day MA of 17982.62, indicating a neutral trend. The MACD of -106.94 indicates Negative momentum. The RSI at 50.40 is Neutral, neither overbought nor oversold. The STOCH value of 48.53 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IL:MZTF.

Mizrahi Tefahot Peers Comparison

Overall Rating
UnderperformOutperform
Sector (68)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
81
Outperform
$54.85B9.9816.99%4.27%17.28%12.05%
68
Neutral
€16.92B12.4914.85%5.40%-1.68%-7.60%
$28.06B10.7015.29%3.08%
$6.65B7.7617.05%5.90%
$11.61B9.6713.45%3.84%
$24.25B10.5013.95%3.45%
8.51B7.48
5.26%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
IL:MZTF
Mizrahi Tefahot
20,670.00
7,278.85
54.36%
BLMIF
Leumi
18.32
9.18
100.44%
FBKIF
Fibi Bank
50.00
14.89
42.41%
ISDAF
Discount
9.45
4.09
76.31%
BKHPF
Poalim
18.48
9.09
96.81%
IL:FIBIH
Fibi Holdings
24,000.00
9,059.57
60.64%

Mizrahi Tefahot Corporate Events

Mizrahi Tefahot Appoints New External Director
Feb 17, 2025

Mizrahi Tefahot Bank Ltd has announced the appointment of Mr. Gilad Rabinowitz as an external director, following approval from the Supervisor of Banks. This strategic move is expected to strengthen the bank’s governance, potentially impacting its market position positively.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Apr 16, 2025